Geyser Systems is an innovative CPG company offering shower solutions for campers or inhabitants of areas where water is scarce. The company’s first portable shower product is a hit in camping stores. As the company is introducing its water-saving showerhead, we contacted Jonathan Ballesteros to learn more about the opportunity to invest in his business.

Funding Round Details

Geyser Systems logo
Company: Geyser Systems
Security Type: Equity - Preferred
Valuation: $9,996,000
Min Investment: $100
Platform: Wefunder
Deadline: Apr 29, 2024
$1,199,997
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What are the products that your company is selling and which problems are they solving?

Our business is built around the following problem – We identified 60 million people in the US living in water-stressed or off-grid situations that need to clean and conserve water while enhancing their shower experience.

This includes the 40 million living along the Colorado River Basin that pay, on average, $170 monthly on water bills. These bills are rising 9-15% in cities like San Francisco, San Diego, and Los Angeles. Today’s low-flow shower head options may conserve water but deliver a disappointing shower experience. 

Another 20 million live in RVs, vans, or overlanding rigs that want to remain off the grid for extended periods (boondocking). However, their limited 50-gallon water tank becomes empty in 3 days, and showers are the first cause of overflowing gray water tanks. This requires people to dump gray water tanks every three days at RV dump stations, which costs $15 – $30 per visit. It’s a dreadful experience that everyone delays as long as possible. People avoid this frustrating problem by staying at RV parks with RV hookups that supply fresh water and receive foul water. However, RV hookups are expensive – $500 to $1000 monthly. That high cost comes with the miserable experience of being stuck in noisy, crowded parks. Hence the sudden boom for overlanding and van life that seek to remain off-the-grid.

Simply put, our product is the world’s best way to shower and clean your gear with less than 1 gallon of water. Our products perform an entire order of magnitude better when compared to today’s 15-25 gallon shower. Unlike the disappointing experience of low-flow shower heads, our aromatherapy infusion creates the most amazing shower of your life. For RVers, van lifers, and overlanders, our water-saving products allow their 50-gallon water tank to last 30 days, not three days.

How do our products do this? Instead of a showerhead spraying water everywhere, we make the most of every drop of water by sending it through a sponge at the end of a hose line. Imagine combining a loofah, shower wand, and essential oils into one device. It’s a remarkable experience loved by over 10K customers! Most importantly, this directly disperses water where you need it and saves significant amounts. 

Our proprietary technology includes two filings. Our first utility patent is already approved in South Africa, China, Australia, and Israel. Our technologies have practical applications for military, disaster relief, marine, and other situations where water is really limited.

What inspired you to take the leap and start this company?

I’ll never forget the moment.

Quick background – My time at Stryker Neurovascular and Stanford University’s BioDesign program provided the methodology for innovation that applies to any industry. In 2016, I saw the controversial rise of overlanding in the outdoor gear industry and believed it was the future of camping for every American. After 12 years of designing advanced surgical instruments, I quit my job, went to Australia to learn from the best in the industry, and lived in the back of an Overlanding rig for one year. During that time, I identified and prioritized the greatest gaps and needs in the outdoor gear industry.

My adventures took an unexpected turn six months into my road trip. My friends set me up on a blind date. On the morning of the blind date, I had a serious problem: I traversed the Australian Outback for weeks without a shower and smelled like a burning dumpster. I needed a shower. All I had to get clean was 8 ounces of bottled water.

Dabbing water into my moist rag was worse than the most unsatisfying baby wipe. 

In the midst of my frustration, the question dawned on me – How can I make the most of every drop of water?

That question stopped me. Without a doubt, the answer would change the world.

It’s been six years since that question gripped me. My pursuit (and obsession) for the answer hasn’t stopped.

Why did your revenue decrease between 2021 and 2022?

During that time, we navigated the post-COVID pull-back of the market felt by the outdoor gear industry. Supply across the industry exceeded demand. Revenue decreased when our only retailer (REI Co-op) canceled purchase orders. Not only did they have to cut purchase orders across the industry, but they also needed to navigate excess inventory in their distribution warehouses. Instead of reducing prices for faster sell-through, we worked with REI by absorbing most of their inventory and re-distributing this through other channels. REI’s remaining inventory was used to support sales through 2022, so no new orders from REI were generated during this time. 

Since then, we have taken steps to grow into new distribution channels such as Amazon, Expedition Superstore, & Modula Racks. Despite the headwinds, retailers report our products are top performing relative to the market, seeing -20 to -40% YOY sales. Unlike other products in the category, we continue to see YOY growth in sell-through across all channels. We are excited to announce our upcoming launch at BassPro, Cabela’s, and eTrailer.com in Q1 2024.

Most importantly, our situation in 2021 strengthened our relationship with REI. They recognized that a small start-up like us wasn’t in a position to absorb so much inventory. We made it happen. Every investor who learns how we handled that critical relationship is left impressed. It’s a winning story of overcoming an odd situation and growing our most important relationships. As a result, we are now part of REI’s automated ordering and inventory system. This speaks to our long-term position at our country’s largest, most important camping retailer. I’m really proud of that.

What is your strategy to grow your sales?

Our sales growth strategy includes three parts.

  1. Introduce the Geyser EcoShower – This new product was launched in November 2023. Our proprietary technology now installs into any shower in the market, both residential and RV’s. It’s priced for velocity – MSRP $89.99 – $104.99. This opens our total available market from $1.2B to $8.2B. We’re especially excited about the EcoShower’s essential oil infusion, which turns any shower into a world-class aromatherapy experience. This product will debut at the Quartzsite RV Show on January 20th.
  2. Hyper-focus on two new segments: RV’s and hunters – Our sales channel strategy now includes BassPro and eTrailer.com offering our products this spring. We’re also attending the Utah Hunt Show in February. We have potential opportunities with military and wildland firefighters contracts, but will further explore them in 2025 after we achieve consistent success among RV’s and hunters.

Bring our shower trailers to consumer shows where people camp – In 2023, we generated significant revenue by attending consumer shows: Moore Expo, Teton Expo, and four Overlanding Expos. These shows include 1000’s of campers. Our shower trailer service was a huge hit – 1 out of 4 people who tried the Geyser ended up buying one. Everyone attending these events talked about how incredible our experience was. In 2024, we’re contracted to attend the Quartzsite RV Show, King of the Hammer’s Ford Bronco Nation, Utah Hunt Show, Salt Lake Off-Road & Outdoor Expo, Telluride Bluegrass Festival, and Overland Expo shows.

How can your products appeal to customers outside of the United States?

The international demand for the Geyser EcoShower is real. We’re excited about the international potential of the Geyser EcoShower. It’s compatible with any showerhead worldwide and designed with other water-stress regions in mind.

Consultants in Mexico City took the Geyser EcoShower and validated its potential by introducing it to potential customers. Three million people live off the water grid and spend 10% of their income to truck & heat water. 23 million people live with 500-1000 gallon water tanks on their rooftops to sustain basic living for 5-8 weeks per year when water infrastructure breaks or earthquakes happen. Potential customers told us that, at an MSRP of $59, the Geyser EcoShower pays for itself within five weeks because it reduces costs associated with water delivery and propane heating. We identified target locations, distribution channels, and contract manufacturers for successful commercialization.

Mexico City is not alone. The United Nations identified other mega-cities facing similar water-stressed situations: Lagos, Cairo, Tokyo, New Delhi, and São Paulo. 66% of the world’s population may live in water-stressed conditions by 2025. 

Our products are not only designed to solve these problems, but also to be the low-cost leader for the long term future. Our PCT-filed patent includes a rapid CNC stitching pattern that keeps production costs low. The outcome of our production line is a compressed cellulose that’s 4mm thick, which allows us to ship the sponge in the cheapest way possible: envelope and stamp. Our thoughtful design for manufacturing achieves the lowest production and shipping costs for quick global commercialization.

Who is on your team and what do they bring to the company?

 I’m excited about many things, but nothing excites me more than my crew. Being the leader of such dedicated, amazing people is a real honor and privilege. Each person is the best at what they do.

Our lead investor, Susan W, has invested $500K into the success of Geyser Systems. No one knows more about water conservation than Susan. She’s a hydrologist, geochemist, and believes in the impact that our products will make for people and the planet.

Our CFO, Lisa Holland, has built a robust back-end to support all our activities. She’s tracking every activity in all four classes: outdoor gear, home products, event services, and military. Lisa comes with over 30 years consulting 3,500 businesses, being a stock broker for Merrill Lynch, and earned the Top 10 Governance Award from B Corp.

Our CMO, Bret Thompson, has managed marketing campaigns for over 250 companies and garnered over $750M in total revenue. His 360-degree, holistic approach to marketing has made us a winning brand that our retailers and customers love.

We also have five advisors who come with great networks and guidance. Eric brings marketing tactics and strategy from his experience as VP of Kelty. Matt brings a strong sales network, especially in the outdoor industry. He’s currently VP of Vail Resorts and previous VP of Outdoor Association. Cathy is an executive coach at Code Breakers Technologies and brings industry-leading teamwork and sales techniques that deliver fast high-quality results. As an outdoor guide, Steve brings AI fintech and depth to the hunting industry. Anthony is our patent counsel who sets IP strategy and works with our patent attorneys at K&L Gates. 

The people who work day-in-day-out at Geyser are what I call “Our Dream Team.” All six of them started from our assembly line. In other words, they are all experts in our product and embody the values of our company. Each comes to the table with natural talents, making this a fun and exciting workplace. Yvonne is our supply chain and inventory manager. Our year-end inventory recounts are done in 4 hours! Lee is our quality manager and the PhD in our products. He solved our greatest problems, product, and process, that our top engineers couldn’t solve. Witnessing his genius while he refurbishes and tests all our products is fun. Henry is our production leader and manages up to 20 assemblers in our daily activities. As you can imagine, his role includes the greatest confluence of chaos. You’ll never meet a more even-keeled and quiet leader. His style of command carries us through the toughest production battlefields. Josh is our talent scout and HR manager. He is responsible for seeking part-time employees & summer interns that conquer our peak production times. Besides normal human resource responsibilities, Josh runs our weekly staff meeting, which tracks our culture and business KPIs. Everyone is rated every week against the values of Geyser. Out of 10, we obtain an average rating of 9.2 for job engagement and demonstrating our values. Josh is a leading force for that valuable result. Ian is our product manager who coordinates events, retailers, and brand ambassadors and manages our customer service. Imagine the coolest connector that everyone knows and loves. Celebrating and growing brands come naturally to him. He’s an expert at leaving each person feeling heard and empowered to make a difference. I especially love people’s reactions to meeting him for the first time in person. They are surprised by how young he is, which speaks to our leadership. Although Trish is a Marine and works part-time, she has made over 20K scrubs. Having her dedication, discipline, and stamina on every scrub is a real honor. 

I’m only as good as the people that surround me. You can tell that each person loves what they do by the way they nerd out and talk about their role. I love learning from them and finding what’s missing that would make a difference. On behalf of our crew, we invite you to come visit us in Montrose, Colorado. We’d love to share a cup of coffee with you and give you a tour!

What is the most important lesson you learned as an entrepreneur?

Great leaders leave greater leaders behind. Some people call it soft skills, but bringing the best out of people is the hardest work. I especially feel stretched when everyone relies on me as the expert with deep knowledge of the product, industry trends, and competition. I keep reminding myself, “People don’t care how much you know until they know how much you care”.

That was very clear to me after a conversation with one investor. He asked to tour our manufacturing line in Colorado. At the end of his tour, he asked me, “The great resignation is real. People don’t want to work anymore. So how do you find people to work for you?”. 

My response was, “I see something different happening. There are plenty of people who want to work. There’s just no good bosses to work for. People are tired of showing up and not feeling heard or acknowledged. At Geyser, we’re experiencing something different in the labor market. People know us as one of the best places to work in Colorado. People are willing to take a pay cut and be at a workplace they love.”

I’ve got an economic argument for Jeff Weiner’s (former CEO of LinkedIn) philosophy for compassionate management. For example, building a brand is expensive. To keep costs down, you need everyone in your team to make every conversation powerful and remarkable. Conversations, however, are tricky because they involve people. Today’s normal, default experience of people quickly comes with a limiting context of what’s possible. 

That’s when I recognized something missing in Jeff Weiner’s approach. Our entire team needs actual steps for people to navigate relationships. Today’s society doesn’t teach how to communicate. What do you say when you disagree? What do you say when someone is slacking? What do you say when expectations are not met? With new hires, I have to unpack all the baggage accumulated in previous workplaces. Why? We don’t have time nor can afford the typical nonsense at other companies. For example, no one at Geyser needs to write a CYA email. There’s no workplace drama or passive-aggressive behavior aloud. We’re really clear about how we work together. We’re clear about the behaviors we don’t accept. I terminate people who don’t take our values seriously.

At Geyser Systems, we teach and train communication tools beyond the default, limiting context. What’s best is that the tools work in any area important to one’s life. We explore what’s possible in these areas, especially in relationships we’re resigned to. These tools profoundly affect how one navigates the world, both professionally and personally. When breakdowns occur, we clean relationships up and restore our integrity. 

This self-examination is done through what we call The Geyser Playbook. It’s so profound and simple that our investors asked it be included in the bylaws and a required practice of our board. Why? Because our investors say that The Geyser Playbook is THE reason why we WIN. It’s our core technology. Our team leaves each other, our customers, partners, and investors feeling heard. We move forward with so much velocity we forget what day we are living in. Time really flies here. One employee says it best: “It sounds unbelievable. I actually look forward to Monday mornings.”

Sustainable growth means you must consistently care for people, especially your team. The key is being consistent, especially when things go wrong or not as expected for a customer or employee. 

At some point, the ecosystem of conversations shifts toward a regular, positive, and established affinity for our brand. Word-of-mouth marketing starts to set in. Getting there requires much more than a good product. You must start with your crew. You must start with yourself. You gotta show people that you’re willing to do “the work” and show up differently.

Teaching people how to communicate and become greater leaders in any area of life that’s important to them…that’s the most important lesson I learned and pushed me out of my comfort zone. It’s why I love my job.

If we speak again in 12 months, which milestones will you have achieved?

We generated over $1.7M in sales, transformed the lives of 20K customers, empowered 15 employees, and saved over 600M gallons of water through our products. By 2025, we’ll have plenty of momentum behind us, and we’ll start expanding internationally. We’ll also kick-start conversations for merger and acquisition.